q3-2020: performance review - icici bank · 2020-01-25 · credit cards 56% sourced via digital...

Q3-2020:

Performance review

January 25, 2020

Certain statements in this release relating to a future period of time (including inter alia concerning our future

business plans or growth prospects) are forward-looking statements intended to qualify for the 'safe harbor'

under applicable securities laws including the US Private Securities Litigation Reform Act of 1995. Such

forward-looking statements involve a number of risks and uncertainties that could cause actual results to

differ materially from those in such forward-looking statements. These risks and uncertainties include, but are

not limited to statutory and regulatory changes, international economic and business conditions; political or

economic instability in the jurisdictions where we have operations, increase in non-performing loans,

unanticipated changes in interest rates, foreign exchange rates, equity prices or other rates or prices, our

growth and expansion in business, the adequacy of our allowance for credit losses, the actual growth in

demand for banking products and services, investment income, cash flow projections, our exposure to

market risks, changes in India’s sovereign rating, as well as other risks detailed in the reports filed by us with

the United States Securities and Exchange Commission. Any forward-looking statements contained herein

are based on assumptions that we believe to be reasonable as of the date of this release. ICICI Bank

undertakes no obligation to update forward-looking statements to reflect events or circumstances after the

date thereof. Additional risks that could affect our future operating results are more fully described in our

filings with the United States Securities and Exchange Commission. These filings are available at

www.sec.gov.

2

3

Key highlights for Q3-2020

1. Excluding write-offs

2. Excluding technical write-offs

3. Common Equity Tier 1

Profitability

• 23.8% y-o-y growth in core

operating profit

• NII grew by 24.3% y-o-y

Asset quality

• Net NPA ratio decreased to

1.49% at Dec 31, 2019 from

1.60% at Sep 30, 2019

• Recoveries, upgrades and

other deletions1

of ` 40.88 bn

• Provision coverage ratio2

of

76.2% at Dec 31, 2019

Stable funding profile

• 14.6% y-o-y growth in

average CASA deposits in

Q3-2020

• 23.6% y-o-y growth in term

deposits at Dec 31, 2019

Healthy loan growth

• Domestic loan growth was

16.5% y-o-y

• Retail loan growth was

19.3% y-o-y

Healthy capital position

• CET13

ratio of 13.62% and

Tier I ratio of 14.98% at Dec

31, 2019

Distribution network

• Extensive footprint of 5,275

branches and 15,589 ATMs at

Dec 31, 2019

• ~ 50% of branches in semi-

urban and rural areas

Net interest margin (NIM)

NIM was 3.77% in Q3-2020

Operating expenses

Provisions

Declined by 50.9% y-o-y to ` 20.83

billion

P&L trends: Q3-2020

Growth of 20.8% y-o-y to ` 55.71 billon

Fee income

17.4% y-o-y growth to ` 35.96 billion;

retail fee growth of 25.5% y-o-y

Core operating profit to average assets

2.84% in Q3-2020

(Q2-2020: 2.71%, Q3-2019: 2.58%

Profit after tax

Increased to ` 41.46 billion in Q3-2020

from ` 16.05 billion in Q3-2019

4

Strong operating performance

5

Profit & loss statement

FY

2019

Q3-

2019

9M-

2019

Q2-

2020

Q3-

2020

9M-

2020

Q3-o-Q3

growth

Net interest income1

270.15 68.75 193.95 80.57 85.45 243.40 24.3%

Non-interest income 131.46 34.04 96.81 38.54 40.43 111.43 18.8%

- Fee income 119.89 30.62 88.11 34.78 35.96 101.12 17.4%

- Dividend income from

subsidiaries

10.78 3.24 8.09 3.77 3.67 9.35 13.3%

- Others 0.79 0.18 0.61 (0.01) 0.80 0.96 -

Core operating income 401.61 102.79 290.76 119.11 125.88 354.83 22.5%

Operating exp. 180.89 46.12 130.81 53.78 55.71 158.23 20.8%

- Employee exp. 68.08 17.34 49.09 21.41 19.42 60.36 12.0%

- Non-employee exp. 112.81 28.78 81.72 32.37 36.29 97.87 26.1%

Core operating profit 220.72 56.67 159.95 65.33 70.17 196.60 23.8%

(` billion)

1. Includes interest on income tax refund of ` 0.16 bn in Q3-2020 and ` 2.42 bn in 9M-2020 (FY2019: ` 4.48 bn, Q3-2019: ` 0.21

bn, 9M-2019: ` 0.34 bn, Q2-2020: ` 0.42 bn)6

Profit & loss statement

(` billion) FY

2019

Q3-

2019

9M-

2019

Q2-

2020

Q3-

2020

9M-

2020

Q3-o-Q3

growth

Core operating profit 220.72 56.67 159.95 65.33 70.17 196.60 23.8%

Treasury income 13.661

4.79 12.101

3.41 5.31 10.51 10.9%

Operating profit 234.38 61.46 172.05 68.74 75.48 207.11 22.8%

Provisions 196.61 42.44 142.10 25.07 20.83 80.86 (50.9)%

Profit before tax 37.77 19.02 29.95 43.67 54.65 126.25 -

Tax 4.14 2.97 6.01 7.92 13.19 29.96 -

Re-measurement of deferred tax

assets2

- - - 29.20 - 29.20 -

Profit after tax 33.63 16.05 23.94 6.55 41.46 67.09 -

1. Includes profit on sale of shareholding in subsidiaries of ` 11.10 billion in FY2019 and 9M-2019

2. Deferred tax asset re-measured at the revised marginal tax rate of 25.17%

Segment-wise PBT: slide 39 Consolidated P&L: slides 40-41

7

Key ratios

Percent FY2019 Q3-2019 9M-2019 Q2-2020 Q3-2020 9M-2020

Net interest margin1,3

3.42 3.40 3.31 3.64 3.77 3.68

Cost to income 44.82

42.9 44.82

43.9 42.5 43.3

Provisions/core operating profit 89.1 74.9 88.8 38.4 29.7 41.1

Provisions/average advances3

3.67 3.05 3.59 1.67 1.34 1.79

Core operating profit/average

assets

2.56 2.58 2.50 2.71 2.84 2.72

Return on average assets3

0.39 0.73 0.37 0.27 1.68 0.93

Standalone return on equity3

3.2 6.0 3.0 2.4 14.6 8.0

Consolidated return on equity3

3.8 6.7 3.7 3.9 15.5 9.4

Weighted average EPS (`)3

5.2 9.9 4.9 4.0 25.5 13.8

Book value (`) 168.1 166.4 166.4 171.4 177.8 177.8

1. Includes interest on income tax refund of ` 0.16 bn in Q3-2020 and ` 2.42 bn in 9M-2020 (FY2019: ` 4.48 bn, Q3-2019:

` 0.21 bn, 9M-2019: ` 0.34 bn, Q2-2020: ` 0.42 bn)

2. Excludes gain on sale of stake in subsidiaries

3. Annualised for all interim periods

Yield, cost and margin: slide 38 Consolidated ratios: slide 42

8

Balance sheet growth

9

Funding profile

(` billion) Dec 31,

2018

Mar 31,

2019

Sep 30,

2019

Dec 31,

2019

Y-o-Y

growth

% share at

Dec 31, 2019

CASA 2,993.74 3,239.40 3,250.00 3,364.09 12.4% 47.0%

- Current 885.81 962.69 944.31 1,009.89 14.0% 14.1%

- Savings 2,107.93 2,276.71 2,305.69 2,354.20 11.7% 32.9%

Term 3,073.81 3,289.80 3,712.73 3,799.36 23.6% 53.0%

Total deposits 6,067.55 6,529.20 6,962.73 7,163.45 18.1% 100.0%

Q3-2019 Q4-2019 Q2-2020 Q3-2020

Average CASA ratio 46.0% 44.6% 42.2% 42.8% - -

• 23.6% y-o-y growth in average CA and 11.8% y-o-y growth in average SA in Q3-2020

Balance sheet-liabilities: slide 43-44

Consolidated balance sheet: slide 47 Extensive franchise: slide 52

10

Loan portfolio

(` billion) Dec 31,

2018

Mar 31,

2019

Sep 30,

2019

Dec 31,

2019

Y-o-Y

growth

% share at

Dec 31, 2019

Advances 5,643.08 5,866.47 6,133.59 6,356.54 12.6% 100.0%

- Domestic book 4,971.44 5,236.14 5,533.24 5,790.67 16.5% 91.1%

- Retail 3,332.08 3,528.31 3,809.66 3,976.46 19.3% 62.6%

- SME1

162.32 179.17 190.64 217.44 34.0% 3.4%

- Corporate and

others2 1,477.03 1,528.66 1,532.94 1,596.77 8.1% 25.1%

- Overseas book3

671.64 630.32 600.35 565.87 (15.7)% 8.9%

• Growth in performing domestic corporate portfolio was 12.1% y-o-y at Dec 31, 2019

• Including non-fund based outstanding, the share of retail portfolio was 52.0% of the

total portfolio at Dec 31, 2019 (Sep 30, 2019: 49.9%)

1. SME portfolio includes borrowers with turnover less than ` 2.50 billion

2. Includes SME borrowers with turnover of ` 2.50 billion - ` 7.50 billion

3. Includes impact of exchange rate movement

Balance sheet-assets: slides 45-46

Portfolio composition: slide 49 11

Retail portfolio

(` billion) Dec 31,

2018

Mar 31,

2019

Sep 30,

2019

Dec 31,

2019

Y-o-Y

growth

% share at

Dec 31, 2019

Home loans 1,711.19 1,782.36 1,907.76 1,963.71 14.8% 49.4%

Vehicle loans 531.45 556.66 569.12 584.06 9.9% 14.7%

- Auto finance 309.11 314.36 315.17 323.84 4.8% 8.1%

- Commercial business 211.63 228.85 237.21 244.20 15.4% 6.1%

- Two wheeler loans 10.71 13.44 16.74 16.02 49.6% 0.4%

Business banking 170.74 188.45 227.43 251.10 47.1% 6.3%

Rural loans 462.61 499.60 519.20 540.66 16.9% 13.6%

Personal loans 277.85 310.15 377.56 420.41 51.3% 10.6%

Credit cards 114.19 123.04 146.96 163.07 42.8% 4.1%

Others 64.05 68.05 61.63 53.45 (16.5)% 1.3%

- Dealer funding loans 43.35 46.15 42.74 32.69 (24.6)% 0.8%

- Loan against shares and others 20.70 21.90 18.89 20.76 0.3% 0.5%

Total retail loans1

3,332.08 3,528.31 3,809.66 3,976.46 19.3% 100.0%

1. Includes buyouts of ` 68.52 billion at Dec 31, 2019 (Dec 31, 2018: ` 68.50 billion; Mar 31, 2019: ` 77.41 billion; Sep 30,

2019: ` 76.53 billion)

12

Digital transactions

131. Includes internet, mobile, POS, touch banking, phone banking and debit cards e-commerce transactions

Mobile banking UPI

168% y-o-y118% y-o-y

Electronic toll collection • Market leader with 51% acquiring and 57% issuing market share

by value in 9M-2020

• The Bank has issued over 2.7 million tags till Dec 31, 2019

• Over 87% of savings account transactions1

in 9M-2020 through digital channels

Digital sourcing of various products in 9M-2020

19% initiated via

digital medium

SIPs initiated

43% sourced via

digital channels1

Credit cards

56% sourced via

digital channels

Fixed deposits

58% sourced via

digital channels1

Personal loans27% protection

policies sold online

Term life insurance policies

1. Percentage share based on count of customers. Digital includes insta and digitally sourced customers with physical KYC

₹

14

15

1. Q3-2020 over Q1-2020

2. Non-ICICI Bank account holders can register digitally and instantly open CA digitally, get instant unsecured OD, collect

payments and access business networking platform

Average daily

activations

60%

Contribution to CMS,

trade and OD

attachments

32%

No. of transactions1

42%

Average daily

activations

60%

Contribution to CMS,

trade and OD

attachments

No. of transactions1

42%

InstaBIZ

16

Recent initiatives

• Virtual relationship managers managing customers remotely by providing

banking solutions

• Using customer persona to provide customised recommendations

• Bank has ~1,000 e-RMs servicing ~1 million customers at Dec 31, 2019

eRM channel

Ease of integration

Detailed workflow for

ease and quick

understanding of API

Convenient access to APIs

Makes API banking

accessible to a large no. of

prospective partner

companies and developers

Enhances productivity

Reduces time taken to

develop a business

solution to a few days

One-stop for integrating APIs

Industry first portal for

designing, testing and

going live

Integrates multiple partners

Businesses, fintechs,

corporates and e-

commerce start-ups

Largest range of 250 APIs

Across financial

and non-financial

categories

ICICI Bank API

Banking portal

Asset quality trends

17

NPA trends

(` billion) Dec 31, 2018 Sep 30, 2019 Dec 31, 2019

Gross NPAs1 515.91 456.39 434.54

Less: cumulative provisions1 353.39 347.23 330.65

Net NPAs1 162.52 109.16 103.89

Gross NPA ratio1

7.75% 6.37% 5.95%

Net NPA ratio1

2.58% 1.60% 1.49%

Provision coverage ratio2

68.4% 76.1% 76.2%

Provision coverage ratio3 76.3% 85.0% 85.7%

1. Based on customer assets

2. Excluding technical write-offs

3. Including technical write-offs

4. Excludes specific provision against standard assets

• Net investment in security receipts of ARCs was ` 20.87 billion at Dec 31, 2019

(Sep 30, 2019 : ₹ 32.76 billion)

• Outstanding general provision on standard assets4: ` 32.17 billion at Dec 31, 2019

(Sep 30, 2019: ₹ 30.92 billion)

• Net standard restructured loans of ` 2.99 billion at Dec 31, 2019 (Sep 30, 2019: ` 2.65 billion)

18

NPA addition trends


2. Includes decrease in outstanding of ` 7.20 billion on existing NPAs due to rupee appreciation

3. Includes slippages from the kisan credit card portfolio of ` 3.12 billion in Q3-2020 (Q3-2019: ` 1.93 billion)

4. Includes conversion of non-performing loans of ` 8.45 billion to compulsorily convertible preference shares

under debt restructuring scheme

NPA movement1

(` billion) FY2019 Q3-2019 Q2-2020 Q3-2020

Opening gross NPA 540.63 544.89 457.63 456.39

Add: gross additions 110.39 20.91 24.82 43.63

- Retail 35.96 10.71 13.23 18.90

- Corporate and SME 74.43 10.20 11.59 24.73

Less: recoveries, upgrades & others 47.16 19.162

12.63 40.88

- Retail 20.68 5.803

7.14 7.793

- Corporate and SME 26.48 13.36 5.49 33.094

Net additions 63.23 1.75 12.19 2.75

Less: write-offs 112.49 9.26 13.28 24.60

: sale of NPAs 28.45 21.47 0.15 -

Closing gross NPAs 462.92 515.91 456.39 434.54

Retail NPAs: slide 48

19

Corporate and SME: NPA additions1


2. Impact of rupee depreciation on foreign currency NPAs

3. Largely comprise a broking account (which has been fully provided) and a South India-based industrial company

where servicing is regular, but where a refinancing undertaken in 2018 has now been assessed to be a restructuring,

leading to a classification as non-performing by lenders to the company

` billion Q3-2020

- Corporate and SME 24.73

- Increase in outstanding on existing NPAs 0.802

- BB and below portfolio 7.07

of which: Devolvement of non-fund based o/s to existing NPAs 2.25

Other BB and below 4.82

- Others 16.863

20

Corporate and SME: BB and below

` billion Mar 31,

2019

Jun 30,

2019

Sep 30,

2019

Dec 31,

2019

BB and below outstanding1,2,3

175.25 153.55 160.74 174.03

- Fund and non-fund o/s to restructured loans 5.64 2.42 2.24 1.96

- Non-fund o/s to non-performing loans4

42.20 36.27 33.71 39.195

- Borrowers under RBI resolution schemes5

39.95 40.03 39.29 38.94

- Other borrowers with o/s greater than ` 1.00 bn5

38.05 31.86 46.62 59.78

- Other borrowers with o/s less than ` 1.00 bn5

49.41 42.97 38.88 34.16

1. Excludes banks

2. Excludes investments

3. Excludes fund-based outstanding to NPAs

4. Provisions of ` 11.34 billion were held against non-fund o/s to non-performing loans at Dec 31, 2019 (Sep 30, 2019: `13.43 billion; Jun 30, 2019: ` 13.51 billion; Mar 31, 2019: ` 15.91 billion)

5. Fund-based and non-fund based outstanding21

Movement in Corporate and SME BB and below in Q3-2020

(` billion)

22

1,2,3,4 1,2,3,4

1. Fund-based and non-fund based outstanding

2. Excludes banks



5. Excludes fund-based outstanding to accounts downgraded from investment grade during Q3-2020 and classified as

non-performing during the same quarter

6. Includes devolvement of non-fund based outstanding to existing NPAs

5

5,6

Movement in Corporate and SME BB and below in 9M-2020

(` billion)

23

1. Fund-based and non-fund based outstanding

2. Excludes banks



5. Excludes fund-based outstanding to accounts downgraded from investment grade during 9M-2020 and classified as non-

performing during the same quarter

6. Includes devolvement of non-fund based outstanding to existing NPAs

1,2,3,41,2,3,4

5

5,6

Exposure to power sector

(` billion) Sep 30,

2019

Dec 31,

2019

Share at Dec

31, 2019 (%)

Borrowers classified as NPA or part of BB and

below portfolio1

110.36 92.17 28.6%

Other borrowers 223.70 229.88 71.4%

Total 334.06 322.05 100.0%

• Of the other borrowers aggregating ` 229.88 billion, excluding exposure to State

Electricity Boards, ~77% was rated A- and above

1. Including loans restructured or under a RBI resolution scheme

Sector-wise exposures: slide 50

24

NBFCs, HFCs and builder portfolio

Outstanding (` billion) Sep 30, 2019 Dec 31, 2019

NBFCs1

265.78 268.24

HFCs1

141.31 139.83

Builder portfolio (construction finance, lease rental

discounting, term loans and working capital loans)

225.15 230.99

1. Includes loans, investment and non-fund based outstanding25

Improving rating profile of overall loan book

• ~90% of the disbursements in 9M-2020 in the domestic and international corporate

portfolio was to corporates rated A- and above

Rating category1,2

Mar 31,

2016

Mar 31,

2017

Mar 31,

2018

Mar 31,

2019

Sep 30,

2019

Dec 31,

2019

AA- and above 30.6% 37.2% 42.4% 45.1% 44.9% 41.7%

A+, A, A- 21.3% 19.0% 20.1% 22.0% 21.4% 28.1%

A- and above 51.9% 56.2% 62.5% 67.1% 66.3% 69.8%

BBB+, BBB, BBB- 27.8% 28.7% 27.5% 28.2% 30.2% 26.9%

BB and below 16.6% 9.2% 4.0% 2.2% 1.6% 1.4%

Non-performing loans 3.0% 5.4% 5.4% 2.3% 1.7% 1.6%

Unrated 0.7% 0.5% 0.6% 0.2% 0.2% 0.2%

Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Total net advances (` billion) 4,353 4,642 5,124 5,866 6,134 6,357

1. Based on internal ratings

2. For retail loans, ratings have been undertaken at the product level26

Reduction in concentration risk

• Hard limit on borrower groups based on turnover and track record, lower than the

regulatory limits

Details Mar 31,

2016

Mar 31,

2017

Mar 31,

2018

Mar 31,

2019

Sep 30,

2019

Dec 31,

2019

Exposure to top 20

borrowers1

as a % of total

exposure

13.3% 12.4% 12.5% 10.8% 11.1% 11.0%

Exposure to top 10 groups

as a % of total exposure

18.5% 16.8% 14.3% 13.6% 13.3% 12.5%

1. Excludes banks 27

Capital

28

Strong capital position

Sep 30, 20191

Dec 31, 20192

(` billion) % (` billion) %

Total capital 1,172.53 16.14% 1,215.70 16.50%

- Tier I 1,061.80 14.62% 1,103.86 14.98%

- of which: CET1 961.82 13.24% 1,003.66 13.62%

- Tier II 110.73 1.52% 111.84 1.52%

Risk weighted assets 7,263.56 7,369.73

- On balance sheet 6,375.49 6,488.58

- Off balance sheet 888.07 881.15

• Capital adequacy ratios well above the minimum regulatory requirement of

Tier I ratio of 9.08% and total capital adequacy ratio of 11.08%

1. As per Basel III guidelines, includes profit for H1-2020

2. As per Basel III guidelines, includes profit for 9M-2020

Consolidated capital adequacy: slide 51

29

Subsidiaries

30

Profit after tax of subsidiaries

Profit after tax (` billion) FY2019 Q3-2019 Q2-2020 Q3-2020

ICICI Prudential Life Insurance 11.41 2.97 3.02 3.02

ICICI Lombard General Insurance 10.49 2.39 3.08 2.94

ICICI Prudential Asset Management1

6.83 1.96 3.05 3.05

ICICI Securities (Consolidated)1

4.91 1.01 1.35 1.37

ICICI Securities Primary Dealership1,2

0.78 1.19 1.40 0.97

ICICI Home Finance1

0.44 0.09 (0.61) 0.03

ICICI Venture 0.70 0.02 (0.04) 0.03

ICICI Bank UK (USD million) (52.9) (14.6) 11.9 8.0

ICICI Bank Canada (CAD million) 52.4 13.4 14.2 22.1

1. As per Ind AS

2. Represents total comprehensive income

Details on subsidiaries: slides 53-58

31

Insurance subsidiaries

1. Value of New Business

2. Gross Direct Premium Income

3. Annualised

ICICI Prudential Life Insurance

• VNB1

grew by 24.7% y-o-y to ` 11.35 billion in 9M-2020; VNB margins increased

from 17.0% in FY2019 to 21.0% in 9M-2020

• Protection annualised premium equivalent (APE) grew by 65.7% y-o-y to ` 7.64

billion in 9M-2020 and is 14.1% of APE in 9M-2020

• New business premium grew by 19.7% to ` 81.73 billion in 9M-2020

ICICI Lombard General Insurance

• GDPI2

was ` 101.32 billion in 9M-2020 compared to ` 110.03 billion in 9M-2019

– Excluding crop segment, GDPI grew by 13.2% y-o-y to ` 100.58 billion in 9M-2020; in line

with the industry growth (excluding crop segment)

• Combined ratio was 100.5% in 9M-2020 compared to 98.7% in 9M-2019

• Return on average equity was 21.8%3

in 9M-2020

32

Environmental and social initiatives

33

Environmental and social initiatives (1/2)

34

Creating a positive impact while building sustainable business and

ensuring value creation for all stakeholdersFocus

• Sound risk management practices underlying the business strategy of

growing core operating profits

• Supporting environment-friendly projects based on appropriate

assessment of risks

• Continuous efforts towards operational efficiency and minimising impact

on environment

o The Bank is ensuring IGBC1

green building features in all new offices and

branches at the time of set up; 11 offices awarded Platinum rating by IGBC

• Continued efforts towards providing skill training and sustainable

livelihood opportunities through ICICI Foundation

• Meeting the complete financial requirements of the rural customers and

their ecosystem

Key

priorities

1. Indian Green Building Council

• Commissioned a 1MWp solar power

plant at our Disaster Recovery Data

Centre

• Plant to generate 1.6 million kWh of power

annually and avoid 1,312 tons of CO2

emissions

• Total 2.8 MWp of onsite renewable

energy capacity at Dec 31, 2019; account

for ~8% of overall energy consumption

• ICICI Foundation’s extensive community

engagement in the rural ecosystem;

385,000 native trees planted across 950

locations in 9M-2020

35

Environmental and social initiatives (2/2)

Environment Social

• Empowering women entrepreneurs;

credit provided to 6.7 million women

through 519,000 SHGs till Dec 31, 2019

• Skill training provided to over 485,000

individuals through the skill

development initiatives of ICICI

Foundation

• The two RSETIs1

run by ICICI

Foundation rated as top two in the

country by Ministry of Rural

Development (MoRD)

1. RSETI: Rural Self-Employment Training Institute

Thank you

Additional financial information

37

Yield, cost and margin

Movement in yield, costs &

margins (Percent)1

FY2019 Q3-2019 9M-2019 Q2-2020 Q3-2020 9M-2020

Yield on total interest-earning

assets

8.03 8.06 7.87 8.39 8.40 8.40

- Yield on advances 8.96 9.00 8.84 9.52 9.52 9.47

Cost of funds 5.10 5.14 5.04 5.19 5.06 5.16

- Cost of deposits 4.87 4.88 4.82 5.06 4.92 5.02

Net interest margin 3.42 3.40 3.31 3.64 3.77 3.68

- Domestic 3.77 3.72 3.66 3.92 4.04 3.96

- Overseas 0.30 0.77 0.38 0.41 0.38 0.37


• Includes interest on income tax refund of ` 0.16 bn in Q3-2020 and ` 2.42 bn in 9M-2020

(FY2019: ` 4.48 bn, Q3-2019: ` 0.21 bn, 9M-2019: ` 0.34 bn, Q2-2020: ` 0.42 bn)

38

Unconsolidated segment-wise PBT

Profit before tax

(` billion)

FY2019 Q3-2019 9M-2019 Q2-2020 Q3-2020 9M-2020

Retail 82.23 19.53 61.20 25.69 25.58 70.94

Wholesale (102.42) (20.92) (74.52) 5.13 12.30 12.39

Treasury 51.65 19.94 41.79 11.39 15.66 37.81

Others 6.31 0.47 1.48 1.46 1.11 5.11

Total 37.77 19.02 29.95 43.67 54.65 126.25

39

Consolidated profit & loss statement

(` billion) FY2019 Q3-2019 9M-2019 Q2-2020 Q3-2020 9M-2020 Q3-o-Q3

growth

Net interest income 328.04 83.70 236.53 97.72 103.26 294.54 23.4%

Non-interest income 593.25 149.17 420.44 163.19 167.48 465.70 12.3%

- Fee income 143.63 36.39 106.67 40.95 42.01 119.93 15.4%

- Premium income 420.94 103.93 290.65 112.36 115.11 320.14 10.8%

- Other income 28.68 8.85 23.12 9.88 10.36 25.63 17.1%

Total income 921.29 232.87 656.97 260.91 270.74 760.24 16.3%

Operating expenses 642.59 160.27 452.47 177.27 181.77 509.97 13.4%


40

Consolidated profit & loss statement

(` billion) FY2019 Q3-

2019

9M-

2019

Q2-

2020

Q3-

2020

9M-

2020

Q3-o-Q3

growth


Provisions 204.62 43.81 147.22 27.26 21.32 84.16 (51.3)%

Profit before tax 74.08 28.79 57.28 56.38 67.65 166.11 -

Tax 17.19 6.44 15.66 10.84 16.51 40.29 -

Re-measurement of deferred

tax asset1

- - - 29.70 - 29.70 -

Minority interest 14.35 3.61 10.78 4.53 4.44 12.97 23.0%

Profit after tax 42.54 18.74 30.84 11.31 46.70 83.15 -

1. Deferred tax asset re-measured at the revised marginal tax rate of 25.17% 41

Key ratios (consolidated)

Percent FY2019 Q3-2019 9M-2019 Q2-2020 Q3-2020 9M-2020

Weighted average EPS1

6.6 11.6 6.4 7.0 28.7 17.1

Book value (`) 177 175 175 181 189 189


42

Balance sheet: liabilities

(` billion) Dec 31, 2018 Mar 31, 2019 Sep 30, 2019 Dec 31, 2019

Net worth 1,071.67 1,083.68 1,106.10 1,150.01

- Equity capital 12.88 12.89 12.92 12.94

- Reserves 1,058.79 1,070.79 1,093.18 1,137.07

Deposits 6,067.55 6,529.20 6,962.73 7,163.45

- Savings 2,107.93 2,276.71 2,305.69 2,354.20

- Current 885.81 962.69 944.31 1,009.89

- Term3,073.81

3,289.80 3,712.73 3,799.36

Borrowings1

1,642.93 1,653.20 1,510.33 1,373.75

Other liabilities 341.49 378.51 390.95 383.47

Total liabilities 9,123.64 9,644.59 9,970.11 10,070.68

• Credit/deposit ratio of 81.7% on the domestic balance sheet at Dec 31,

2019 (Sep 30, 2019: 80.1%)

1. Including impact of rupee depreciation 43

Composition of borrowings

(` billion) Dec 31,

2018

Mar 31,

2019

Sep 30,

2019

Dec 31,

2019

Domestic860.85 905.42 860.19 754.66

- Capital instruments282.40 270.25 245.33 232.35

- Other borrowings578.45 635.17 614.86 522.32

- Long term infrastructure bonds 194.97 194.97 194.97 194.97

Overseas borrowings1 782.08 747.78 650.14 619.08

Total borrowings1,642.93 1,653.20 1,510.33 1,373.75

1. Including impact of rupee depreciation44

• Floating rate loan book was ~69% of total domestic loans at Dec 31, 2019; of

which ~81% is linked to MCLR and ~8% is linked to repo rate

Balance sheet: assets

(` billion) Dec 31,

2018

Mar 31,

2019

Sep 30,

2019

Dec 31,

2019

Cash & bank balances 664.59 802.96 716.39 704.37

Investments 1,977.30 2,077.33 2,233.76 2,274.80

- SLR investments 1,432.06 1,479.10 1,661.44 1,680.50

- Equity investment in subsidiaries 98.03 98.03 98.03 98.03

Advances 5,643.08 5,866.47 6,133.59 6,356.54

Fixed & other assets1

838.67 897.83 886.37 734.97

- RIDF 2and related 289.95 292.55 284.21 275.02

Total assets 9,123.64 9,644.59 9,970.11 10,070.68

1. Non-banking assets (net of provisions) acquired in satisfaction of claims were nil at Dec 31, 2019 (` 13.45 billion at Dec

31, 2018; ` 10.04 billion at Mar 31, 2019 and ` 3.32 billion at Sep 30, 2019)

2. Rural Infrastructure Development Fund45

Equity investment in subsidiaries

(` billion) Dec 31,

2018

Mar 31,

2019

Sep 30,

2019

Dec 31,

2019

ICICI Prudential Life Insurance 32.97 32.97 32.97 32.97

ICICI Bank Canada 18.74 18.74 18.74 18.74

ICICI Bank UK 18.05 18.05 18.05 18.05

ICICI Lombard General Insurance 13.49 13.49 13.49 13.49

ICICI Home Finance 11.12 11.12 11.12 11.12

ICICI Securities Limited 1.28 1.28 1.28 1.28

ICICI Securities Primary Dealership 1.58 1.58 1.58 1.58

ICICI AMC 0.61 0.61 0.61 0.61

ICICI Venture Funds Mgmt 0.05 0.05 0.05 0.05

Others 0.14 0.14 0.14 0.14

Total 98.03 98.03 98.03 98.03

46

Consolidated balance sheet

(` billion) Dec 31, 2018 Mar 31, 2019 Sep 30, 2019 Dec 31, 2019

Cash & bank balances 728.21 873.91 798.02 793.96

Investments 3,780.49 3,982.01 4,281.14 4,352.63

Advances 6,250.25 6,469.62 6,754.52 7,004.74

Fixed & other assets 1,016.03 1,062.40 1,047.22 897.78

Total assets 11,774.98 12,387.94 12,881.90 13,049.11

Net worth 1,128.15 1,142.53 1,172.77 1,222.35

Minority interest 63.03 65.81 69.48 70.59

Deposits 6,354.46 6,813.17 7,255.83 7,467.87

Borrowings 2,142.03 2,103.24 2,045.42 1,893.03

Liabilities on policies in force 1,423.57 1,523.79 1,578.16 1,638.57

Other liabilities 663.74 739.40 761.24 756.70

Total liabilities 11,774.98 12,387.94 12,881.90 13,049.11

47

Retail NPAs

Retail NPAs (` billion) Dec 31, 2018 Sep 30, 2019 Dec 31, 2019

Gross retail NPAs 59.01 75.39 85.99

- as a % of gross retail advances 1.75% 1.96% 2.14%

Net retail NPAs 25.28 32.17 37.89

- as a % of net retail advances 0.76% 0.84% 0.95%

48

Portfolio composition

Dec 31,

2018

Mar 31,

2019

Sep 30,

2019

Dec 31,

2019

Domestic 81.6% 83.0% 84.2% 85.0%

International 18.4% 17.0% 15.8% 15.0%

Total consolidated advances

(` billion)

6,250 6,470 6,755 7,005

49

Sector-wise exposures

Top 10 sectors1: % of total

exposure of the Bank

Mar 31,

2016

Mar 31,

2017

Mar 31,

2018

Mar 31,

2019

Sep 30,

2019

Dec 31,

2019

Retail finance 27.1% 31.9% 34.2% 37.3% 39.4% 40.2%

Services – finance 4.9% 6.2% 7.0% 7.3% 7.0% 7.5%

Banks 8.0% 6.0% 8.4% 7.9% 7.5% 7.0%

Electronics & engineering 7.3% 6.9% 6.7% 6.6% 6.2% 6.0%

Crude petroleum/refining &

petrochemicals

5.7% 5.5% 5.6% 5.7% 6.1% 5.8%

Road, port, telecom, urban

development & other infra

5.8% 5.3% 4.2% 4.6% 4.5% 4.3%

of which: Telecom 1.6% 1.7% 1.5% 2.0% 1.8% 1.7%

Wholesale/retail trade 2.8% 2.5% 2.8% 3.1% 3.0% 2.9%

Services - non finance 4.9% 4.0% 3.3% 3.1% 2.9% 2.7%

Power 5.4% 5.1% 4.6% 3.3% 2.9% 2.7%

Construction 3.4% 3.1% 3.2% 2.9% 2.7% 2.6%

Total (` billion) 9,428 9,372 10,265 11,207 11,613 11,956

1. Top 10 based on position at December 31, 201950

Consolidated capital adequacy

Basel III (%) Sep 30,

20191

Dec 31,

20192

Total capital 15.81% 16.12%

- Tier I 14.30% 14.64%

- of which: CET 1 13.07% 13.43%

- Tier II 1.51% 1.48%

1. As per Basel III guidelines, includes profit for H1-2020

2. As per Basel III guidelines, includes profit for 9M-202051

Extensive franchise

Branches At Mar

31, 2017

At Mar

31, 2018

At Mar

31, 2019

At Sep

30, 2019

At Dec

31, 2019

% share at

Dec 31, 2019

Metro 1,440 1,443 1,438 1,563 1,580 30%

Urban 990 991 991 1,064 1,068 20%

Semi urban 1,444 1,449 1,453 1,527 1,543 29%

Rural 976 984 992 1,074 1,084 21%

Total branches 4,850 4,867 4,874 5,228 5,275 100%

Total ATMs 13,882 14,367 14,987 15,159 15,589 -

52

Insurance subsidiaries

ICICI Life (` billion) FY2019 Q3-2019 Q2-2020 Q3-2020

Annualised premium equivalent 77.99 19.62 18.99 20.38

- Of which: protection 7.22 1.95 2.83 2.67

Total premium 309.30 75.66 81.91 82.64

Assets under management 1,604.10 1,499.81 1,655.12 1,719.53

Expense ratio1

15.0% 14.2% 16.3% 16.7%

1. All expenses (including commission) / (Total premium – 90% of single premium)


ICICI General (` billion) FY2019 Q3-2019 Q2-2020 Q3-2020

Gross written premium 147.89 37.69 30.31 37.69

Combined ratio 98.5% 95.9% 102.6% 98.7%

Return on average equity2 21.3% 19.0% 22.0% 20.3%

53

ICICI Bank UK

(USD million) FY2019 Q3-2019 Q2-2020 Q3-2020

Net interest income 70.5 17.2 15.3 16.0

Loans and advances 2,442.5 2,390.0 2,319.2 2,463.5

Deposits 2,140.8 1,894.2 2,022.7 2,144.9

- Retail term deposits 677.1 608.8 593.0 645.3

Capital adequacy ratio 16.8% 17.1% 17.9% 17.7%

- Tier I 12.9% 13.1% 14.3% 14.4%

• Net impaired loans was USD 55.1 million at Dec 31, 2019 compared to USD

54.3 million at Sep 30, 2019

54

ICICI Bank UK1

1. At Dec 31, 2019

2. Includes cash & advances to banks and T Bills

3. Includes securities re-classified to loans & advances

Asset profileLiability profile

Total liabilities: USD 3.92 bnTotal assets: USD 3.92 bn

55

ICICI Bank Canada

(CAD million) FY2019 Q3-2019 Q2-2020 Q3-2020

Net interest income 91.4 24.0 24.9 27.5

Loans and advances 5,771.6 6,015.6 5,664.4 5,673.6

- Residential mortgages 3,546.6 3,487.4 3,566.4 3,631.5

Deposits 3,195.0 3,191.4 3,036.6 2,993.7

Capital adequacy ratio 17.1% 16.6% 18.9% 19.6%

- Tier I 16.6% 16.0% 18.4% 19.1%

• Net impaired loans decreased from CAD 6.4 million at Sep 30, 2019 to CAD 3.7

million at Dec 31, 2019

56

ICICI Bank Canada1

Liability profileAsset profile

Total liabilities: CAD 6.45 bnTotal assets: CAD 6.45 bn

1. At Dec 31, 2019

2. Includes cash & placements with banks and government securities

3. Insured mortgages include CAD 2,635.0 million at Dec 31, 2019 (Sep 30, 2019: CAD 2,617.9) of securitised mortgages

4. As per IFRS, proceeds of CAD 2,608.3 million at Dec 31, 2019 (Sep 30, 2019: CAD 2,592.0 million) on securitisation of

residential mortgages are considered a part of borrowings57

ICICI Home Finance1

(` billion) Sep 30, 2019 Dec 31, 2019

Loans and advances 151.36 154.13

Gross impaired loans (stage 3)2

8.12 8.28

Net impaired loans (stage 3) 4.65 4.76

Capital adequacy ratio3

15.02% 14.43%

1. As per Ind AS

2. Includes commercial real estate loans of ` 4.73 billion at Dec 31, 2019 (Sep 30, 2019: ` 4.72 billion)

3. As per NHB guidelines 58

q3-2020: performance review - icici bank · 2020-01-25 · credit cards 56% sourced via digital...

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